In Kerala, Jobs Exist but Unemployment Persists. How?

The PLFS data reveals an alarming unemployment rate of 27.7 percent among Keralites aged 15 to 29.

The Kerala Employment Exchange Live Register has over 24.5 lakh Keralites (out of a population of 3.4 crore) registered, seeking employment as of 1 September.

(Photo: Kamran Akhter/The Quint)

Since its formation in 1957, Kerala has grappled with the persistent challenge of unemployment. Every edition of the Kerala Economic Review (KER) published by successive state governments has acknowledged that unemployment remains a significant issue.

For instance, the 1962 Kerala Economic Review reported that approximately 7.6 lakh Keralites were unemployed at the time, with an additional 1.28 lakh individuals, both under 15 and over 55, available for work. The review also noted that around 11 percent of the male and 21 percent of the female labour force—of a total workforce of about 54.6 lakh—were unemployed. This amounted to roughly 14 percent of the total labour force being without jobs in 1962.

The same document revealed that the intensity of unemployment in Kerala stood at 2.44, with West Bengal slightly ahead at 2.6, making it the state with the highest unemployment rate at the time.

Fast forward to 2024, and the Periodic Labour Force Survey 2023-24 (PLFS) reveals an alarming unemployment rate of 27.7 percent among Keralites aged 15 to 29. Jammu and Kashmir tops the list with a 29.7 percent unemployment rate, followed closely by Odisha at 28 percent. The national average is 16.8 percent.

The Kerala Employment Exchange Live Register has over 24.5 lakh Keralites (out of a population of 3.4 crore) registered, seeking employment as of 1 September.

Interestingly, neither the 27.7 percent unemployment rate from the PLFS nor the 24.5 lakh registrations on the Kerala Employment Exchange seem visible on the streets.

According to the aforementioned register, there are just over five lakh graduates, nearly 1.2 lakh post-graduates, 37,000 engineers, and 2,000 doctors who have registered and are waiting for a government job call. But there are no widespread protests in the state demanding jobs, nor do we see this large unemployed Keralite population actively engaged in on-site work.

Trade unionists, sociologists, and experts explain why.

Why No Anger?

Speaking to The Quint, VJ Joseph, General Secretary of the Indian National Trade Union Congress, highlighted two key reasons behind the high unemployment rate in Kerala.

"First, the educated population is unwilling to take up semi-skilled and low-skilled jobs. Many Keralites have developed an attitude that not all jobs are dignified, with the majority of them seeking white-collar positions."

VJ Joseph

Another factor is the lack of industries and manufacturing that could generate more employment opportunities. According to the Kerala Economic Review 2023, the preliminary estimates for 2022-23 indicate that the service sector, mainly education, continues to be the backbone of Kerala's economy, contributing 62.62 percent to the Gross State Value Added (GSVA) during this period.

In 2022-23, the agricultural sector only accounted for just 27.27 percent of total workforce participation and contributed only 8.97 percent to the GSVA. The manufacturing sector contributes 12.66 percent to the GSVA and employs only 10.91 percent of the workforce.

Opportunities Lost

Pramod Kumar, a former United Nations official based in Kerala, agreed that the lack of a manufacturing sector and the ongoing decline of the agrarian sector are the primary reasons behind the unemployment rate in the state.

“Kerala was once a thriving trade hub, known for its good quality export commodities like coir and cashew. Unfortunately, militant trade unionism has hindered the growth of the industrial and manufacturing sectors, which are essential job generators in any state. Additionally, the agrarian sector is deteriorating due to factors like climate change and poorly designed policies, particularly wage reforms. As a result, we have lost ground.”

Pramod Kumar

Adding to this, Mini Mohan, a sociologist and labour migration expert, said, "Keralites have been migrating in large numbers to the Gulf countries since the 1960s, driven largely by unemployment in the state. The unemployed youth who once disappeared from Kerala reappeared as workers building Gulf cities, which is still happening."

"As petro-dollars started flowing back, Kerala's socio-economic conditions improved, leading to higher education standards. Over time, Keralites developed an aversion to semi-skilled and low-skilled jobs within the state. Now, everyone wants a government job or they migrate. Those aiming for government jobs register with the employment exchange and hope for placements. Unfortunately, the governments have failed to create enough job opportunities, pushing the unemployment rates higher."

Mini Mohan

Unofficial figures gathered by Keralite socio-cultural organisations in the Gulf suggest that there are still between 30 to 35 lakh Keralites working and residing in the region. That is approximately 10 percent of Kerala's total population.

"If we analyse the numbers, we can observe a 30:30:30 equation in Kerala. Approximately three million people are unemployed in Kerala, slightly more than three million Keralites are working abroad, primarily in the Gulf, and around three million inter-state migrants are employed within Kerala," Mini added.

"Jobs are available in Kerala, but the reluctance of Keralite youth to take them up is contributing to the rising unemployment rate. Meanwhile, inter-state migrants are securing many of the semi-skilled and low-skilled jobs in the state. It's an attitude problem among Keralite youth."

This is same the mindset driving the migration of students from Kerala to Western countries, she concluded.

High Wages And Influx of Migrants

In the past few decades, Kerala has been a hotspot for inter-state migrants looking for jobs, especially from central, east and northeast India.

According to Benoy Peter, Executive Director of the Centre for Migration and Inclusive Development, both push and pull factors are making Kerala a hotspot for migrants. "The push factors include climate change, unemployment and poverty in their home states, while the pull factor is the high minimum wages offered in Kerala."

Quoting the India Wage Report prepared by the International Labour Organisation (ILO 2018), the KER 2024 notes that states with consistently high casual wages in both rural and urban areas are Kerala, Jammu and Kashmir, Punjab, and Haryana. The states with the lowest wages for casual workers in urban areas are Uttar Pradesh, Assam, Madhya Pradesh, West Bengal, and Chhattisgarh, and in rural areas Odisha, Maharashtra, Gujarat, Madhya Pradesh, and Chhattisgarh.

According to the 2022-23 estimates, Kerala is ranked on the top in daily wage rate with Rs 696.6 followed by Kashmir with Rs 517.9 and Tamil Nadu with Rs 481.5. In UP, Bihar, Madhya Pradesh, Orissa, West Bengal, Assam and other states, the wages still range between Rs 250 to 350 per day.   

When asked why unemployment rates are high in Kerala, despite there being jobs available for more than three million inter-state migrants, Peter explained that educated Keralites have an aversion to taking up these jobs.

“In almost every sector in Kerala, such as construction, shops, and establishments, we see inter-state migrants. They are willing to take up blue-collar jobs and earn a decent income. However, Keralites, especially the educated youth, are hesitant to do the same work here.”

Benoy Peter

In short, while there are plenty of jobs available in Kerala, its youth are reluctant to take them, leading to a tendency to migrate, and when the government fails to create jobs in sectors like manufacturing and agriculture, unemployment remains high.

(Rejimon Kuttappan is an independent journalist, labour migration specialist and author of Undocumented [Penguin 2021]. This is an opinion piece, and the views expressed are the author’s own. The Quint neither endorses nor is responsible for them.)